Gold price started the week with a small bearish gap but managed to regain its traction during the Asian trading hours. After touching a new record-high of $3,245, XAU/USD entered a consolidation phase and declined toward $3,200. At the time of press, the pair was trading at $3,208, losing about 1% on the day.
Gold price retreats as risk mood improves
Gold gained nearly 2% on Friday as safe-haven flows dominated the action in financial markets after China announced that they raised additional tariffs on US imports to 125% from 84% in retaliation.
Late Friday, US President Donald Trump's administration said they decided to grant some electronic device imports, including smartphones, computers and laptops, exemptions from the steep 125% additional tariffs imposed on China.
Trump clarified that these products will still be subject to the 20% existing tariffs, which were imposed initially because of the fentanyl crisis in the US.
Over the weekend, US Commerce Secretary Howard Lutnick said that technology imports, alongside semiconductors, will face separate new levies within the next two months.
These developments helped the market mood improve on Monday, causing Gold to stage a downward correction. Reflecting the risk-positive atmosphere, US stock index futures gain between 1.1% and 2% heading into Wall Street's opening bell.
The economic calendar will not feature any high-tier data releases in the American session.
Investors will pay close attention to comments from Federal Reserve officials. Additionally, Trump is expected to share additional details regarding the trade policy on semiconductors.
Source: FXStreet
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